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San Miguel Brewery Sales Force Union (PTGWO) vs. Hon. Blas Ople G.R. No. L-53515, February 8, 1989

The San Miguel Brewery Sales Force Union filed a case against Hon. Blas Ople regarding a new marketing scheme introduced by San Miguel Corporation called the "Complementary Distribution System" or CDS. The union alleged that the CDS would reduce the salesmen's take home pay in violation of their collective bargaining agreement. The issue was whether the unilateral introduction of the CDS by the employer was valid. The Supreme Court ruled that the CDS was a valid exercise of managerial prerogative since San Miguel offered to compensate affected salesmen through a "back adjustment commission", demonstrating their good faith and lack of intent to undermine the union.

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274 views1 page

San Miguel Brewery Sales Force Union (PTGWO) vs. Hon. Blas Ople G.R. No. L-53515, February 8, 1989

The San Miguel Brewery Sales Force Union filed a case against Hon. Blas Ople regarding a new marketing scheme introduced by San Miguel Corporation called the "Complementary Distribution System" or CDS. The union alleged that the CDS would reduce the salesmen's take home pay in violation of their collective bargaining agreement. The issue was whether the unilateral introduction of the CDS by the employer was valid. The Supreme Court ruled that the CDS was a valid exercise of managerial prerogative since San Miguel offered to compensate affected salesmen through a "back adjustment commission", demonstrating their good faith and lack of intent to undermine the union.

Uploaded by

Gela Bea Barrios
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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San Miguel Brewery Sales Force Union(PTGWO) vs. Hon. Blas Ople G.R. No.

L-53515, February 8, 1989

FACTS: For 3 years, a collective bargaining agreement was being


implemented by San Miguel Corporation Sales Force Union(PTGWO), and San Miguel Corporation. Section 1, of
Article IV of which provided “Employees within the appropriate bargaining unit shall be entitled to a basic
monthly compensation plus commission based on their respective sales.”

Then, the company introduced a marketing scheme known as “Complementary Distribution System”
(CDS) whereby its beer products were offered for sale directly to wholesalers through San Miguel’s Sales Offices.
The union alleged that the new marketing scheme violates Sec 1, Art IV f the CBA because the introduction of the CDS would
reduce the take home pay of the salesmen.

ISSUE:
Whether or not the new marketing scheme should be upheld considering that the act was unilaterally made by
the employer.

RULING:
Yes, because it is a valid exercise of managerial prerogative. So long as a company’s management prerogatives are exercised in
good faith for the advancement of the employer’s interest and not for the purpose of defeating or circumventing the rights of t
he employees under special laws or under valid agreements, this Court will uphold them.

San Miguel Corporation’s offer to compensate the members of its sales force who will be adversely affected by the
implementation of the CDS by paying them a so-called “back adjustment commission” to make up for the
commissions they might lose as a result of the CDS proves the company’s good faith and lack of intention to bust
their union.

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